It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.

The $15 spent to make one pair of jeans is its production cost—the direct cost of producing the item. Discontinuing shirt production means giving up the value of what the company could have produced instead, which is an opportunity cost. Therefore, the correct choice is production cost; opportunity cost.

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